The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-09-20
VOL. LV.--N0. 20.
OUTCRY FOR MORE MONEY.
SAYINGS BANKS REFUSING TO LEND
EVEN ON GOVERNMENT BONDS

The statements Of representative business
men about the monetary situation that were
printed In THE Sun OF Sunday created q pro-
found impression In the mercantile and finan-
cial communities. The prevalent feeling which
The SUN formulated found its quickest and
most forcible expression In Wall street. which,
as every one knows is most sensitively alert to
discount tho good as we'll as tho bad In the
general business situation. A good many Of
the hard conditions that at present attend tho
conduct Of mercantile affairs have been
known in Wall street for some time,
but the setting OF them forth before the
public gave them added weight 1t was
generally conceded that the public had Just
grounds for expecting the Treasury Depart
ment to disgorge its unnatural accumulations.
and in default OF any indications that such q
course would be pursued at once the holders
Of securities betrayed good deal OF nervous
ness, which was promptly reflected in much
lower prices. not only for stocks Of specu-
lative character, but for the 1rst-class, divi-
dend-paying stocks and good bonds as WELL
Wall street cares comparatively little for panics
that grow out Of its own affairs, but the posi-
bility Of general business depression caused
stocks to drop yesterday with n dull thud, and
there YES tsG to speak Of
dations there Is no dispute. Stocks would not
the hodersy ala bsssa
that the necessities of the mercantile and COM
msrcal .S communities were very great
were never 30 light wasted and incompetent
IS they are now. The result Of q fairly active
terday was that stocks closed from IL to go
per cent lower than on Saturday and at the
pr fs 70 q sss ssy Eh Ss w nSnd no a
news or any hint of any. SO that the shrinkage
may be considered as plainly traceable to the
The money brokers declared that they were
bidding and ps fen e f 81 aRa y
the the mainstay Of the situation although the Big
lie insurance companies and the trust COM
they refuse, however, absolutely to entertain
bids for time money either at 8 or 16 per
cent" as one money broker put 1t, and he
a added Il y is not question OF rate They
very significant feature was tho announce
Union Dime, and Williamsburgh Savings Banks
ment bonds as collateral This il, announce.
serves have been depleted by time loans on
SAnother factor IN ut the situation was the tel
egraph messages received from Chicago asking
{or loans on government bonds. The opinion
Cincinnati. and st. Louis, having been consti-
tuted reserve cities" wore pretty we'll provid--
ed with funds at the moment and the request
for money from Chicago enhanced the appre-
tension.
It was, further learned that the banking
England mill owners and manufacturers ask
ing for discounts. The shipments Of currency
enormous. and viewing tho situation particu-
director Of the Second National Bank was III
quick, 1t will break all the merchants'
AS an instance OF the increased trade foT the h,,
e re- a
dollars Of $4,000 S1 more than for the same 70
SECRETARY Sc Fairchild's purchase 81 s4ioo 900
AVS last Wednesday as an indication that he
in the purchase Of bonds we're not q
little ANNOYED yesterday at the report
proceeds were Immediately shipped to San
operations Of the Nevada Bank. The fact that
with Clearing House Connections, and that the
mens on Saturday last, was accepted as evi
dence that the money had gone West for the
Of the situation, said: There is very general
shtness Of money amopg the e merchants pe and
ned stringency and ultimately panic unless
the Government restores the money. It has
o OF ts ba tSs f
eminent Mt bonds IS Hs should buy ali Govern;
pr ss would ia 90 eA Except that involves
question of financial etiquette. He probably
wish to treat better than
a9q s fo thoss hsR
that while they have money for speculative
PURPOSES.
money for Investment left. 1t is further evil
denced that Wall street mon cannot suffer to
~ Robert p; Mlnturn Of Grinnell. Mintqrn
the merchants are suffering Tor money. They
uasss s Paons s%s! =
4 win extend throughout the country. From
m asi yeaf r there surplus pied
up, in the Treasury, and was not -particu-
itahrly noticed. for the simple reason. repeat.
general activity, the scarcity OF money and
inc Big surplus In the Treasury are brought
y dSrnns nothing he the IN
way the Government can make 1t earn any
Thing Is to buy up its obligations. The SEQ
ders OF all kinds Of bonds. and accept such
Oilers as are advantageous to the Government.
th ae b nrssens strngenfy In money VIII cheek
mat mat some merchants are beginning to contract
thelr business already. The next Congress
must reduce taxation. That's what we are
troubled with The taxes to- day, with certain
ma,odlileatlons, are almost identical with those
oiwar days"
a, Mr.. r. Robertson OF James Williamson & Co.,
the iron men, said: Part, indeed might say
almost ALL OF the present money troubles OF
me MERCHANTS is due to the tying up OF money
9y the Treasury Department. There Is no wis
eaom In such a financial policy, and GER
tanly no occasion for 1t, The banks and great
capitalists and moneyed institutions are timid.
ahd some that fear the future more than 9th
ssrs have taken time by the forelock and with
ara dE,aw mas, assistance altogether. The money IN
ne United States Treasury Is no good to
SSSoyernment bonds. He couldn't be in q, better
Spudnt use his money to better advantage
snan In paying his debts. He should use his
surplus In purchasing his outstanding obliga-
mmonsIany and all of them. Tho United States
must have more money. 1t Is progressing in
wealth We and population at the rate Of per cent.
Rer annnm. SO that in SIX years from to-day
iinsle VIII be an addition to- the popu-
tsti9n in the .Uniied States Of 100000.
M Haal building is being extended every
olet M, but 1t Is only TO gain more strength
70 90 ahead. The United States, under Its
riH t,f laKfy